Bankruptcy can be very effective when it comes to clearing unsecured debts. However, bankruptcy will not clear secured debts and your creditors will still be able to seize any assets that you have used as security for those debts. The two most obvious secured debts are car loans and home mortgages. It is possible to [...]
One of the biggest myths associated with bankruptcy is that which suggests a person (or family) will lose everything (except the shirt on their back) by filing for bankruptcy. In most cases, the opposite is the truth. If your bankruptcy petition is well planned, then there is a good chance you will lose nothing except your [...]
Many view bankruptcy as an easy path to debt avoidance. However, if you value your financial reputation, then this process should be at the end of your list of options, not at the top. Bankruptcy can often be avoided if you are prepared to work at it. If you can successfully work your way out [...]
Under a Chapter 7 bankruptcy petition, the trustee will assess all the assets of a petitioner and classify them as either exempt from seizure or available for seizure and sale. In recent years, we have seen people around the country trying to survive without having to file for bankruptcy. In many cases, they have sold [...]
Most bankruptcy petitions are fairly straightforward. The petitioner presents their case to the court, the trustee reviews all the information and, depending on the Chapter filed under, a discharge of unsecured debts ordered. Once a petitioner’s debts have been discharged, the bankruptcy petition is concluded. The petitioner cannot have the case reopened at all. However, [...]
The benefit of a bankruptcy petition is that all your debts are eliminated, wiped away. Even in a Chapter 13 bankruptcy, some debts can be erased thereby giving you the opportunity of restarting with a debt free slate. However, while having your debts cleared is good for you, it’s not good for your creditors. If [...]
When going through a bankruptcy process, your debts will be categorized in a number of different ways. Recentness and money owed are two categories often used, however, the major category, and the one that affects all your creditors, is whether or not the debt is secured or unsecured. Secured debt is any debt that has [...]
Although bankruptcy is covered by federal legislation, there are local laws in each state that also need to be addressed. One of these covers what can and cannot be included in the exempt assets component of a bankruptcy petition. There are 16 states that allow petitioners (debtors) to select either state of federal law, the [...]
A meeting of creditors is not as simple as it may sound. In most Chapter 7 and 13 bankruptcy petitions, a debtor is required to attend a meeting of creditors where they are questioned about their financial situation. This can be a rather intimidating experience – however, it needn’t be if you have an understanding [...]
